Warren, Mamdani advisor criticized after iRobot deal failure transfers control to China

Amazon’s Failed iRobot Deal and Its Consequences

Senator Elizabeth Warren, along with Lina Khan, the former head of the Federal Trade Commission under Biden, has faced significant criticism for their role in opposing Amazon’s acquisition of iRobot, the maker of Roomba. This opposition, it is suggested, led to the company’s bankruptcy and potentially placed it in the hands of Chinese ownership.

Michael Rucci, CEO of national security watchdog State Armor, has been vocal in his condemnation of Warren and Khan’s actions. He argues that their stance has inadvertently supported China’s efforts to enhance its surveillance operations in American homes, claiming that this will make it even more challenging for U.S. households to avoid spying technologies linked to the Chinese Communist Party.

In January 2024, iRobot declared that its merger agreement with Amazon had collapsed, citing regulatory hurdles, especially in Europe. Both Amazon and iRobot jointly stated that there was “no path to regulatory approval” within the European Union.

Progressive lawmakers, including Warren, strongly opposed the deal, raising alarms about Amazon’s perceived anti-competitive practices that could jeopardize consumer privacy.

“I have serious concerns about the Amazon-iRobot deal,” Warren stated. “A dominant company like Amazon should not simply buy out and outcompete.” She advocated for the FTC to reject the merger as a measure to safeguard competition and consumer interests.

The FTC, under Khan’s leadership, echoed these concerns, expressing satisfaction that the proposed merger was abandoned.

Fast forward two years, iRobot filed for bankruptcy last December and is now set to be acquired by Chinese firms Shenzhen Picea Robotics and its affiliate, Santrum Hong Kong. This development raises fears that sensitive data, including housing maps, could be accessible to the Chinese government.

Rucci pointed out that these companies are subject to China’s laws, which could compel them to hand over data to the government without any legal checks or balances.

He emphasized the irony: while Warren and Khan may feel vindicated for blocking Amazon’s acquisition, the real benefactor seems to be Communist China.

“iRobot is in bankruptcy, and Beijing-based buyers are now acquiring its assets, including sensitive residential data. This is the end result of what they tout as consumer protection,” he added.

In a statement, Amazon’s chief global affairs officer, David Zapolsky, remarked that the regulators’ miss on this issue has resulted in losses for innovative American companies and jobs, alongside the country’s intellectual property.

He cautioned that blocked mergers might have prolonged negative effects on both businesses and workers, arguing that excessive regulatory actions can harm those they aim to protect.

Additionally, iRobot co-founder Colin Angle expressed his disappointment over the bankruptcy, noting that innovation can falter not just because an idea is flawed, but also when opportunities for growth are obstructed.